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As your party heads towards what you find out is the Communication Tower, you'll start to encounter wounded soldiers. Talking to them is pointless, and believed to ultimately deduct from your SeeD score. When you reach a set of stairs, one of the wounded will tell you that the area is full of monsters - right as he is dragged off by one.

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This throws you into battle with the Anacondaur, a snake that uses a Squeeze attack as its main damage. It is weak versus ice magic, but it has a lot of health. I think of this as something of a mini-boss fight, because it takes much longer to kill than a normal monster. You can draw Fire and Cure from Anacondaur.
After battling Anacondaur, make sure to top off Squall and Zell's health - don't worry about Seifer. Your party will eventually reach to top of the mountain, where they will observe some repairs being done to the tower, from a overlooking cliffside. Seifer dives straight in, just missing the arrival of Selphie to the scene.
Selphie comes tumbling down the cliffside, apparently looking for Seifer. She leaps off the cliff, running after him. Although tempting, don't have Squall jump off the cliff as well, as this will deduct from your SeeD score. Instead, walk around the side, down the hill.

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At this point Selphie joins your party, and Seifer is gone completely. Any magic he had is automatically given to her, but you're going to have to set up her junctions.
In our next article we'll walk you through the several upcoming "boss battles", ultimately leading to the end of the SeeD exam.